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New productive and services projects

Date interview: April 1 2016
Name interviewer: Agustín Bidinost
Name interviewee: Anonymous
Position interviewee: Member and founder of the CCVQ


Values Societal crisis Social enterprises Social-economic relations Re-orientation New Organizing National government Experimenting Business models Adapting

This is a CTP of initiative: ICA/CCVQ (Argentina)

A critical moment of the CCVQ came at the beginning of 2000s as many of the associates lost their jobs or began to have subsistence problems affected by the economic crisis that the country suffered. This situation put at risk the whole project of the cooperative because housing became a secondary problem for the families.

In this context of deep economic crisis, the Cooperative promoted new projects not related to solving housing problems. Among them are projects aimed at the production of goods and services for the market, others oriented to the care of children and others to education and recreation.

Within the first group the Cooperative set up a small factory for the production of concrete slabs for interlocking paving that meet the requirements of quality control and resistance, fixed internationally for this type of material. Five families participated in the execution and support of this project. At the beginning the production of these slabs were assigned to the paving works of the pedestrian passages of the Cooperative neighborhood. But today, they have surplus production for which services-sharing agreements have been established with other institutions. In addition to this initiative, the CCVQ also promoted an artisan bakery and a textile workshop.

In the second group of projects, they organized a nursery kindergarten. The Children of the Cooperative members attend the nursery kindergarten, who must be absent to perform work tasks, the children are cared for by women belonging to the organization. The children's community kitchen emerged to the economic emergency situation of most of the families of the neighborhood, which only works on Saturdays and Sundays to replace the school kitchen. They regularly attend more than 50 children up to 12 years old.

Finally, within the third group, in 2006 a Popular Library was organized, given the need and concern of the neighborhood. The CCVQ Library is not only a space where books are found, it is also an area for the development of all kinds of cultural, educational and recreational activities.

Other projects that were promoted from the cooperative were a community farm and a waste recycling project.These projects emerged as solutions to the very serious socio-economic situation that most of the members of the cooperative lived. The farm sought to ensure self-sufficiency of food, while the recycling project emerged as an economic alternative for many of the unemployed associates.

Co-production

Most of these projects were organized as a reaction to the serious socio-economic situation experienced by Argentina in the early 2000s. We can therefore identify a process of co-production in which the economic crisis led the members of the CCVQ to seek alternatives to meet other needs in addition to housing.

Since the middle of 2000, the paper and glass recycling project has been initiated with an agreement signed with the company CEAMSE (Ecological Coordination Metropolitan State Society) responsible for the transport and final disposal of solid household waste in the Metropolitan Region of Buenos Aires. In exchange for this service a payment is received from the company that is destined to the Popular Library.

The experience of the Community Farm began in December 2001 coinciding with a time of deep economic crisis with high levels of unemployment and scarce resources. At that time, the priority was to supply the Infant community kitchen, but also sought to generate work for the associates directly involved in the project. The Library project was supported by CCVQ associates, neighbors, friends, publishers and other libraries. Thus, it was possible to gather about 6,000 books that are available to its associates. Starting from cooperative relations with other institutions and organizations, they also develop with some frequency Book Fairs, video projections and debate talks.

The projects of production of goods also developed from the articulation with other actors. The concrete slab factory, for example, entered into agreements to exchange its surplus with other institutions, such as the "Cooperativa 25" and the commerce "Sachi" of Quilmes, by construction materials, with a factory of mosaics in Berazategui by cement, and with the Cooperativa del Barrio San Sebastián (Quilmes) for work services.

In addition, with the factory in operation, the project received the contribution of $ 20,000 from the Ministry of Social Issues. The quality controls are carried out and monitored by the testing laboratory of the Polytechnic school of Berazategui dependent on the National Technological University of La Plata. The school provided them with training and advice regarding concrete. There is also a system of internships whereby 35 students from public schools in the area attend weekly to the factory.

In the case of the Artisan Bakery, it has a production of 300 kilos a day of bread to supply the demand of the members of the Cooperative and the children's community kitchen. They also manufacture pre-pizzas and cakes. Of the sales, 40% are distributed to cover production costs, 40% among the 5 families participating in the project and 20% to the children's community kitchen. Within the framework of this project received a subsidy from the Ministry of Social issues of $ 40,000 that was invested in the expansion of facilities and the purchase of machinery.

Related events

One of the most important events related to this CTP was the economic and social crisis of the beginning of the 21st century. In 1998, Argentina entered what became a four-year depression, during which its economy declined by 28%.

Among other things, the economic policy of parity of the Argentine peso with the US dollar implied the impossibility of issuing currency and the national, provincial and municipal states began to issue pseudo currencies, which the state used for the payment of salaries of public employees. These pseudo-currencies, when attempted to exchange in the market, were rejected or taken at a value well below their nominal value, which indirectly implied a significant wage loss.

Given the economic situation, many families of public employees joined the unemployed. This situation became more serious in the suburban neighborhoods of Buenos Aires where the scarcity of cash caused a serious subsistence crisis for the population that lived from informal work.

On December 19, 2001, the economic crisis resulted in a social outbreak characterized by multiple cases of looting of shops and supermarkets in the suburbs of Buenos Aires province. Faced with this situation, President De la Rua resigns and the country lives two weeks of political crisis in which 5 presidents were succeeded. Finally, after a provisional government of almost one year of Eduardo Duhalde, in May of 2003 assumes the presidency of the nation Nestor Kirchner.

The new government established a new type of cooperative relationship with social movements and organizations. Thus, through the Ministry of Social Issues, the national government financed with different programs and subsidies productive projects.

Contestation

The members of the CCVQ recognize that this CTP emerged as a challenge to support and strengthen the Cooperative's experience through social and productive projects. Thus, it was sought to promote the constitution of new entities that preserve this spirit and organizational structure of solidarity.

One of the challenges to be solved in the organization of these projects was who would participate in them and how the economic benefits generated in them would be distributed. One of the problems was that part of the resources invested were from the entire cooperative, but only a few families could work on the ventures. On the other hand, part of the goods and services produced should be destined to strengthen other projects such as the library and community kitchen.

In developing and sustaining these projects, the commitment of all associates to the cooperative and supportive values that underpinned the CCVQ project from its inception was tested. However, the sustained operation of these projects and the development of new ones over time demonstrate that this challenge was possible.

Anticipation

The situation of economic crisis had been aggravating for several years, so it was possible to anticipate that some solutions would have to be sought in the face of the growing needs of CCVQ associates. The productive projects implemented since 2000, were anticipated by the organization of the specialized construction groups during the self-building activities of the houses. Many of the participants in these groups had already offered their specialized masonry, plumbing or electricity services as a extra income oportunity.

What was clearly not anticipated was that some of the projects initiated had government support with significant economic contributions. This change of attitude on the part of the national state was somehow surprising and enforced the CCVQ experience.

Learning

All the projects developed in this CTP were materialized from complex learning processes. On the one hand, there was a need to incorporate specific technical knowledge related to each particular project. In some cases, such as the concrete slab factory, specialized technical assistance was received. However, the greatest learning was organizational.

The initiatives were developed with a solidarity and cooperative logic for which new management mechanisms and strategies were generated. In this sense, the members of the CCVQ already had great experience that they had developed during the housing self-building process.

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